Facing the talent challenge

The talent impact on companies
Hear CEOs from DIRECTV, Bayer AG, Newmont Mining Corp. and others on the need to attract, develop and retain the right people to help their companies succeed.

Talent shortages and mismatches are impacting profitability now
One in four CEOs said they were unable to pursue a market opportunity or have had to cancel or delay a strategic initiative because of talent challenges. One in three is concerned that skills shortages will impact their company’s ability to innovate effectively.

(c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

CEOs report challenges in hiring across most industries
Even industries such as banking that have retrenched workers in large numbers are still struggling to get the right people. The strain in hiring will not abate in the near term. More CEOs expect to expand their workforces than reduce.

(c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

Seeking more information on effectiveness of their investments in talent
Productivity and labour costs remain important measurements. Yet for many CEOs, those tools aren’t enough. Such measurements cannot isolate skills gaps or identify the pivotal jobs that drive exponential value. Hence CEOs are looking for a more comprehensive understanding of talent today and their needs for tomorrow.

(c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

A new focus on local talent and internal development/promotion

The future of the global workforce

2012 Global CEO Survey - Delivering results through talent

CEOs are more focused on recruiting local talent and developing/promoting from withinWith regards to your plans for your global workforce over the next three years, which of the following statements do you feel is more likely to occur?

We plan to move experienced employees from our home market to newer markets to circumvent skills shortages

We plan to move experienced employees from newer markets to home markets to circumvent skills shortages

We plan to develop and promote most of our talent from within the company

We plan to recruit more experienced talent from outside the company

We plan to primarily recruit local talent wherever we have market needs

(c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

(c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

Let’s face it. There are 80 million Baby Boomers who are going to retire over the next five to seven years, and they’re going to be replaced by 40 million Gen Xers. That’s two to one, so you’d better be developing your next generation now if you’re going to be ready for that transition.

F William McNabb IIIChairman, President and CEO, The Vanguard Group Inc

We’ve spent time thinking about flexibility and mobility. Historically we’re a company that only has a few locations, and people generally come to those locations, and we spend a time in face-to-face meetings. We’ve begun to ask ourselves, are there other ways to manage the business that provide some of our people more flexibility, in terms of where the work gets done and how the works get done?

But what is interesting and what is changing is that among Western companies, the ability to hire, develop and retain talent in the developing economies has become a major point of competitive differentiation.

It isn’t about young versus old, or the developing world versus the developed world. The most critical selection criteria that we used in putting together our team of junior managers together was to maximise diversity of thought.

In some countries we have constant shortages of risk managers or retail experts, for example, or local finance experts with relevant expertise. Sometimes the solution is to relocate people from other offices.